Mc A retail store has three operating departments (Hardware, Clothes, and Home) supported by two service departments Purchasing). Total Advertising expenses of $20,000 are allocated to the operating departments based on sales. Total Purchasing expenses of $22,000 are allocated to the operating departments based on purchase orders. Department Hardware Clothes Home Purchase Orders 900 1,500 Sales $ 126,000 84,000 3,600 6,000 70,000 $ 280,000 Totals 45 Enter answers in the tabs below. Required 1 Required Z Allocate Purchasing expenses to the operating departments. Purchasing Department Hardware Clothes Home Totals Allocation Base Percent of Allocation Base Numerator Denominator Cost to be Allocated Allocated Cost % of Total < Required 1 Iz A retail store has three operating departments (Hardware, Clothes, and Home) supported by two service departments (Advertising and Purchasing). Total Advertising expenses of $20,000 are allocated to the operating departments based on sales. Total Purchasing expenses of $22,000 are allocated to the operating departments based on purchase orders. Department Hardware Clothes Home Totals Purchase Orders 900 Sales $ 126,000 1,500 84,000 3,600 6,000 70,000 $ 280,000 50 Enter answers in the tabs below. Required 1- Required 2 Allocate Advertising expenses to the operating departments. Advertising Department Hardware Clothes Home Totals Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Required 2 >

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 2CE: Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each...
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Mc
A retail store has three operating departments (Hardware, Clothes, and Home) supported by two service departments
Purchasing). Total Advertising expenses of $20,000 are allocated to the operating departments based on sales. Total Purchasing
expenses of $22,000 are allocated to the operating departments based on purchase orders.
Department
Hardware
Clothes
Home
Purchase Orders
900
1,500
Sales
$ 126,000
84,000
3,600
6,000
70,000
$ 280,000
Totals
45
Enter answers in the tabs below.
Required 1 Required Z
Allocate Purchasing expenses to the operating departments.
Purchasing
Department
Hardware
Clothes
Home
Totals
Allocation Base
Percent of Allocation Base
Numerator Denominator
Cost to be Allocated
Allocated Cost
% of Total
< Required 1
Transcribed Image Text:Mc A retail store has three operating departments (Hardware, Clothes, and Home) supported by two service departments Purchasing). Total Advertising expenses of $20,000 are allocated to the operating departments based on sales. Total Purchasing expenses of $22,000 are allocated to the operating departments based on purchase orders. Department Hardware Clothes Home Purchase Orders 900 1,500 Sales $ 126,000 84,000 3,600 6,000 70,000 $ 280,000 Totals 45 Enter answers in the tabs below. Required 1 Required Z Allocate Purchasing expenses to the operating departments. Purchasing Department Hardware Clothes Home Totals Allocation Base Percent of Allocation Base Numerator Denominator Cost to be Allocated Allocated Cost % of Total < Required 1
Iz
A retail store has three operating departments (Hardware, Clothes, and Home) supported by two service departments (Advertising and
Purchasing). Total Advertising expenses of $20,000 are allocated to the operating departments based on sales. Total Purchasing
expenses of $22,000 are allocated to the operating departments based on purchase orders.
Department
Hardware
Clothes
Home
Totals
Purchase Orders
900
Sales
$ 126,000
1,500
84,000
3,600
6,000
70,000
$ 280,000
50
Enter answers in the tabs below.
Required 1-
Required 2
Allocate Advertising expenses to the operating departments.
Advertising
Department
Hardware
Clothes
Home
Totals
Allocation Base
Percent of Allocation Base
Cost to be Allocated
Allocated Cost
Numerator Denominator
% of Total
Required 2 >
Transcribed Image Text:Iz A retail store has three operating departments (Hardware, Clothes, and Home) supported by two service departments (Advertising and Purchasing). Total Advertising expenses of $20,000 are allocated to the operating departments based on sales. Total Purchasing expenses of $22,000 are allocated to the operating departments based on purchase orders. Department Hardware Clothes Home Totals Purchase Orders 900 Sales $ 126,000 1,500 84,000 3,600 6,000 70,000 $ 280,000 50 Enter answers in the tabs below. Required 1- Required 2 Allocate Advertising expenses to the operating departments. Advertising Department Hardware Clothes Home Totals Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Required 2 >
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